Ireland: ''Smoking Laws Will Cost State Millions''

Source from:  Irish Examiner  01/17/2013

Tobacco manufacturers and retailers have warned that new EU anti-smoking legislation will boost the illegal tobacco market and cost the State tens of millions of euro.

The Department of Health has been involved in a public consultation process on plans by the European　Commission to revise the Tobacco Products Directive and make smoking less attractive to young people.

Among the proposals is the placement of health warnings, both images and text, on 75% of the front and back of cigarette packs. A ban on flavoured cigarettes, rolling tobacco less than 40g, as well traditional brands such as Major and Players Navy Cut are also proposed.

The Department of Health's consultation process began on Dec 20 and ended yesterday.

The Irish Tobacco Manufacturers' Advisory Committee (ITMAC) said the proposal was really about prohibition, not regulation and would give a huge boost to an already thriving illegal tobacco market in Ireland.

It pointed out that the legitimate tobacco market contracted by 10% last year but that the rate of smoking remained the same at 29%, indicating consumers had moved over to illegal cigarettes.

The lobby group estimates the legislation would result in an additional tax loss to the State of €250m per year, on top of the €570m that is being lost to the illegal tobacco trade, bringing the total loss to €820m per year.

An ITMAC spokesman said Ireland was not ready for the type of legislation on tobacco that was being drawn up.

"Criminals know what the consumers want and they are giving it to them at half the cost on street corners around the country.

"This legislation will only serve to increase the demand for what would be exclusive black market products," said the spokesperson.

According to retailers, the proposed new rules would outlaw 81 brands currently on sale here.

Convenience Stores and& Newsagents Association CEO Vincent Jennings said Health Minister Dr James Reilly, needed to stop confusing good intentions with ridiculous actions.

"That new laws which will encourage illegal trade are being introduced at a time when there are cutbacks in Garda budgets and less enforcement is ridiculous," he said.

The National Federation of Retail Newsagents said safeguards that ensured young people were not able to purchase tobacco products would be removed with a shift in market share from the legitimate retail sector to the illicit trade.

There are plans to tackle the illegal trade by having a tracking and tracing system and features such as holograms, to ensure only products complying with the directive are sold in the EU.

It is expected that the directive will be adopted next year and come into effect from 2015. Enditem